Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fonterra spends $42 mln on new Chinese dairy farm

Fonterra spends $42 mln on new Chinese dairy farm

by Paul McBeth

Oct. 20 (BusinessDesk) – Fonterra Cooperative Group will spend $42 million on a new dairy farm in China as it looks to build its presence in the world’s most populous nation.

The world’s biggest dairy exporter and the Yutian County Government formally agreed to develop a new farm in the Hebei province, about 100 kms away from Fonterra’s pilot farm in Tangshan.

Fonterra has entered into a long term lease to use the land, much the way that China-resident New Zealand business leader David Mahon suggested this week could work in this country to assuage fears about foreign ownership of local farmland.

The company’s second Chinese farm is expected to begin milking in November next year, and will house 3,000 cows imported from New Zealand while employing about 100 locals.

“China is a very important market for Fonterra and we’re committed to developing and investing in the local dairy industry over the long term,” chief executive Andrew Ferrier said in a statement.

“Today’s agreement further strengthens Fonterra’s capacity to deliver a secure and sustainable supply of fresh dairy products for Chinese customers and consumers.”

Fonterra stepped back from its investment in China after an earlier Chinese partner was caught up in melamine scandal in 2008 that left several infants dead after San-Lu’s farmers added melamine to the milk to lift its protein.

The farm is expected to produce about as much milk as the Tangshan pilot, which has doubled its muster to 6,000 cows and is producing about 25 million litres for local consumption.

Milk from the new farm will be audited under Fonterra’s standards of excellence.

(BusinessDesk) 16:29:10

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news